Dividend Watchdog: How Safe Are These 5 Yields?

Dividends are a major reason for some investors putting their money into equities. But what if the capital is eroded by share price falls? Here we look at 5 stocks that pay great dividends, and discuss how safe the shares are at current levels:
France Telecom (FTE): Shares are trading at $19.11 a the time of writing, at the low end of their 52-week trading range of $17.21 to $24.60. At the current market price, the company is capitalized at $50.59 billion. Earnings per share for the last year were $1.67, and it paid a dividend of $1.45, yielding 7.90%. Although telecom shares act very much like utilities shares now - essentially that is what they are - they do not suffer as much in periods of economic downturn. People still make calls, and use the internet. The risk for the telecom companies come from regulators, and the European Union... Read more